This can potentially lead to problems and the safety of the others in the home.I am planning on speaking with him about the lease violations and switching him from yearly to monthly with an increase in rent, due to the increased labor of the cat and the checks in of the cleanliness of the room. 

Having a vacancy costs money!

Borrowing $200K at 4-5% will cost you $8000 - $10,000 of interest each year. 

-save $1k+ in taxes and fees yearly-can use the savings to get more insurance and a higher liability than the value of house. for flipping houses in California does anyone just put into sole proprietor own name and just use the $1k+ in savings for LLC costs into Insurance or use for savingor am I just being too risky. 

Quote from @Chris Wagner: Hello everyone,I have a property that had sewer damage that costs me $3300. 

I know that if a cost seg, l would need to back that out of my California return.Your answer seems to confirm what I suspected.

These areas often have 3/2 SFHs in your range, with decent BRRRR potential.

They may cost more upfront, and require more work, but you'll see higher returns long term.

One month of vacancy will cost you $2,600 + $200 utilities.

Here are five dangerous provisions to watch for in an Operating Agreement:Dangerous Provisions to Watch:Authority to incur debt without investor approvalPower to make loans to other entities/projectsAbility to cross-collateralize with other propertiesPermission to use investor capital for other venturesCommingling of funds across different projectsWhy These Are Potential Ponzi Indicators:• New investor funds could be used to pay existing investors• Project-to-project lending can mask poor performance• Cross-collateralization puts your investment at risk for others' failures• Commingling enables masking of financial problems• Lack of project segregation enables fraudulent schemesProtective Measures to Look For:Strict single-purpose entity requirementsProject-specific bank accountsDebt limitations and investor approval requirementsProhibited related-party lendingClear fund segregation requirementsProfessional Best Practice:Request bank statements showing separate accounts for each project.